The London-based cryptocurrency exchange has been flagged for its misleading digital ads by an advertising standard organization in the United Kingdom.
With crypto exchanges attempting to expand their customer base, advertising campaigns for alternative investment services started appearing in the public.
Based on a report by the Advertising Standards Authority (ASA) in the UK, the organization has been investigating an advertisement campaign posted by Ziglu, dating back to September of 2021.
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ASA claimed that the crypto exchange issued several digital posters for consumers in Scotland. The ads were seen across the country’s capital Edinburgh, with a title: "Scotland, your capital is at risk."
The organization claimed that the advertisement was a direct call to action, urging people to worry about their finances. Also, the ad was considered misleading as it had no inclinations about digital asset investments, and it was deemed "irresponsible" because the crypto exchange was looking to take "advantage of consumers' inexperience or credulity."
However, Ziglu argued that the campaign is a one-time-only advertisement that was "designed to highlight the risks of financial investments." Likewise, the exchange claimed that the slogan "Scotland, your capital is at risk" was just a reference to the Edinburgh festival, or, presumably, a play on words, referring to the capital of Scotland, which is Edinburgh.
Ziglu highlighted that the advertisement was done purely for the sake of warning consumers of the risks that follow financial investments, as instructed by UK’s financial regulatory body - the Financial Conduct Authority (FCA).
With that being said, the crypto exchange acknowledged that the advertisement may have caused distress to some consumers, but it still can be justified as it is there "to raise awareness of a social problem."
Despite the arguments, the ASA upheld the allegations and urged Ziglu to shut down the advertisement campaign. The organization advised Ziglu to refrain from the wording that would "cause unjustifiable distress", and make clear that the advertised products are cryptocurrencies in further advertisements.
The United Kingdom has been taking crypto advertisements very seriously over the past several months. Back in January, the British Finance Ministry, also known as the HM Treasury, announced that they will be putting digital asset advertisements under the same financial standard as stocks and insurance offers.